LG Expands Global R&D Network To Drive Innovation and Growth in HVAC Market

 LG EXPANDS GLOBAL R&D NETWORK TO DRIVE INNOVATION AND GROWTH IN HVAC MARKET

Company Partners With Norwegian and Italian Universities to Establish the European Consortium for Advanced Heat Pump Research

SINGAPORE, June. 21, 2024 — LG Electronics is making significant strides in expanding its research and development (R&D) capabilities to bolster its Heating, Ventilation, and Air Conditioning (HVAC) business, aiming to lead the global heat pump market. By establishing a global R&D triangle connecting North America, Europe, and Asia, the company aims to develop regionally specialised core technologies optimised for the cold climate of Northern Europe through the establishment of the European Consortium for Advanced Heat Pump Research (ECAHR).

This consortium, formed in collaboration with leading European universities, follows the foundation of the LG Advanced Cold Climate Heat Pump Laboratory in Alaska last year. The company plans to expand efforts to enhance the performance of its Heating, Ventilation and Air Conditioning (HVAC) products in low-temperature climate conditions. This August, LG will also continue its research on cold climate heat pumps in Harbin in partnership with a prestigious Chinese university.

LG’s initiative comes at a critical time, as Northern Europe recently experienced record-breaking cold weather, with temperatures plummeting below minus 40 degrees Celsius. In these regions, achieving high heating efficiency is challenging due to the difficulty of compressing refrigerants at lower pressures. To address this, LG established a consortium to develop heat pumps that deliver top-tier heating performance even in extreme cold conditions.

LG held a signing ceremony on June 18 2024 at the main auditorium of Oslo Metropolitan University in Norway to mark the commencement of the consortium. Members include Oslo Metropolitan University, the Norwegian University of Science and Technology (Norges Teknisk-Naturvitenskapelige Universitet), and the University of Naples Federico II, an institute in Italy actively pursuing research in cold-climate HVAC.

Furthermore, LG is enhancing its core technologies to support global electrification efforts and expand supplemental heating availability in Europe.

In 2022, the EU launched the REPowerEU plan, aiming to reduce dependence on Russian fossil fuels and expand new and renewable energy sources by 2030. As a result, the demand for high-efficiency electric appliances and heat pump heating and cooling systems has surged across Europe, fuelling efforts to lower energy consumption and achieve carbon neutrality.

In line with its expansion strategy, LG is in the process of establishing a comprehensive local operation system for its HVAC business, which is expected to drive growth in its business-to-business (B2B) operations. The system covers all stages locally, from research and development to sales, maintenance and operations.

In line with its expansion strategy, LG is establishing a comprehensive local operation system for its HVAC business, encompassing all stages from R&D to sales, maintenance, and operations. This localised approach is expected to drive growth in LG's business-to-business (B2B) operations, aligning with the company’s Future Vision 2030. CEO William Cho highlighted B2B capability enhancement as a major growth factor, with the HVAC business aiming to more than double its sales by 2030 and become a top-tier global heating and cooling company.

“We aim to expand our presence around the world by developing next-generation heat pump technology tailored to the diverse climate conditions of each region,” said James Lee, head of the Air Solution Business Unit at LG Electronics Home Appliance & Air Solution Company. “We will continue to expand our footprint in the global market, adding value to drive growth in our HVAC business.”

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About LG Electronics Inc.

LG Electronics is a global innovator in technology and consumer electronics with a presence in almost every country and an international workforce of more than 74,000. LG’s four companies – Home Appliance & Air Solution, Home Entertainment, Vehicle component Solutions and Business Solutions – combined for global revenue of over KRW 80 trillion in 2022. LG is a leading manufacturer of consumer and commercial products ranging from TVs, home appliances, air solutions, monitors, service robots, automotive components and its premium LG SIGNATURE and intelligent LG ThinQ brands are familiar names world over. Visit www.LGnewsroom.com for the latest news.

About LG Electronics Air Solution Business Unit

LG air conditioning provides optimized solutions for every sector and climate with a wide range of cutting-edge systems that bring exceptional heating, ventilation and air conditioning performance to buildings worldwide. Through our unmatched expertise and industry knowledge, we respond directly to the needs of businesses seeking digitalized and eco-conscious HVAC solutions. We are the partner your business has been looking for, and are well prepared to integrate our leading technology into your day-to-day operations, supporting you and your business every step of the way. For more information, please visit www.lg.com/global/business/hvac.

About LG Electronics Singapore Pte Ltd

LG Electronics Singapore Pte Ltd (LG Electronics Singapore) is a fully-owned subsidiary of LG Electronics Inc., the pioneer and market leader of the Korean electronics industry. LG Electronics Singapore operates three business units – Home Entertainment, Mobile Communications and Home Appliance & Air Solution. In recognition of its vision to enrich people’s life with smart technologies and innovative design, LG Electronics Singapore has been recognized with prominent local and international accolades, such as the CNET Asia Editor’s and Readers' Choice Awards, HWM+HardwareZone.com Tech Awards, Red Dot Design, and GfK No. 1 Awards. For more information, please visit www.lg.com/sg.

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